The real estate industry is a lucrative opportunity that can earn you a lot of money with time. This is most especially if you are moving from residential to commercial real estate. However, to most investors, commercial property refers to malls, shopping centers, storage and manufacturing facilities, office spaces, retailers, and convenience stores only. However, a few hidden gems in that category of the real estate industry are often overlooked.
Reasons to Invest in Commercial Real Estate
If you don’t know why you should take the plunge in this sector, the best help would be to understand its benefits. They include:
Constant cash flow. You can decide to rent out the property before getting an ideal buyer.
The equity you build on the commercial property keeps growing as the real estate value goes up.
You can build your investment portfolio without any restrictions.
Now that you have the benefits of investing in that sector, read through to understand the six most common commercial investments that many people overlook;
This is high time to invest in a data center because technology is advancing with time. The use of 5G wireless, automated vehicles, artificial intelligence, AR (augmented reality), and other technological systems is picking up at an astonishing speed.
A few years ago, these facilities were not popular. However, they are coming up really well, considering that even their capitalization rates have gone down from the 10% range to about 5 or 7%. This means that these commercial spaces are becoming more expensive.
There is residential and commercial multifamily real estate, which is financed by commercial loans. These assets have become pricey, thanks to their compressed cap rates.
This investment involves giving out a piece of your land to a cell tower company in exchange for long-term monthly income.
This involves creating independent living communities for the seniors. It is not a must that it should be a skilled nursing facility, but you can transform it into that if you like.
Mobile Home Parks
Mobile homes have become a lucrative opportunity. That is why wealthy people like Warren Buffet are investing there. The capitalization rates for mobile home parks have gone down from the 10-14% range to the 6-8% range.
Getting into commercial real estate guarantees you all the benefits mentioned above. Talk to Lionheart Commercial Capital to get the best financing for your business.